QUESTION
If I file bankruptcy after my car gets repossessed how long about will it take to get my credit ok or good again?
Asked on Apr 28th, 2015 on Bankruptcy - Michigan
More details to this question:
I have acquired a lot of debt on top of making a car payment I am no longer able to afford, I am wondering if I should I get it repossessed and file bankruptcy or just deal with the repossession? I am unable to make any sort of payments at this time and am only 26 years old, I don't want this to haunt me forever, and can I clear this up in less than 10 years?
7 ANSWERS
Deborah F. Bowinski
It sounds as though a chapter 7 bankruptcy might be a good option for you. Without knowing more, though, about your income, household size, assets, etc. it is impossible to say for certain. Set up a consultation with an experienced bankruptcy lawyer to evaluate your situation.
Answered on Apr 30th, 2015 at 3:13 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Generally, people can restore a decent credit rating within two years of filing bankruptcy. Just be careful to make all your payments on time after the bankruptcy.
Answered on Apr 30th, 2015 at 2:39 AM
How long it takes to repair your credit after bankruptcy is sort of up to you ? how you use credit in the future will certainly be an important factor. Some people never successfully repair their credit, while others are able to do so in less than a year. I have written 10 legal guides on strategies to repair credit which I share with my clients.
Answered on Apr 29th, 2015 at 12:41 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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If you file a bankruptcy you don't need to await a formal repossession. You can simply 'surrender' the car to the secured party. Repairing credit all other things being equal is somewhat easier than many people think. It's just common sense: be extremely meticulous about paying every single one of the bills you will have after the discharge, such as rent, utilities, any debts your might reaffirm, on time. After 24 or 30 months of always paying on time, assuming a regular job and minimal new debt, you can restore your credit score to more than it was before filing. Good Luck.
Answered on Apr 29th, 2015 at 10:21 AM
Your credit will get back up within the first year if you do not go back into credit.
Answered on Apr 29th, 2015 at 8:43 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Bankruptcy is a serious and commonly misunderstood option. See an attorney. It will be on your record for ten years, and you most probable will be on court mandated installment payments for five years.
Answered on Apr 29th, 2015 at 8:43 AM
If you know you can't afford the payments, the responsible thing to do is give the car back immediately. Then you can wait and see if they are able to sell it for what you owe, or if they will pursue you for a deficiency. If they come after you for more money, then you can decide whether you need to file bankruptcy or not. I call bankruptcy "the nuclear option" because it blows up your credit score, so it should be a last resort. But if you do decide to go ahead with a bankruptcy, you will be surprised by how many offers of credit you will get after filing and you will have no problem financing another car if that's what you want to do.
Answered on Apr 29th, 2015 at 8:43 AM